Gold, silver extend gains on global cues, jewellers buying

Extending gains for the second straight day, gold prices rose by Rs 70 to Rs 27,340 per ten grams at the bullion market today, largely on firm global cues along with increased buying by jewellers.

Silver too advanced by Rs 100 to 38,700 per kg on increased offtake by industrial units and coin makers.

Traders said besides a firm global trend, pickup in buying by jewellers mainly kept gold prices higher.

Globally, gold rose by 0.33 per cent to USD 1,192.70 an ounce and silver by 0.24 per cent to USD 16.75 an ounce in New York in Tuesday's trade.

Depreciating rupee against the dollar and shifting of funds from weakening equity to bullion also influenced the sentiment, they said.

In the national capital, gold of 99.9 and 99.5 per cent purity moved up by Rs 70 each to Rs 27,340 and Rs 27,190 per ten grams, respectively.

It had gained Rs 45 on Tuesday.

Sovereign, however, remained flat at Rs 23,700 per piece of eight gram in limited deals.

Following gold, silver ready strengthened by Rs 100 to Rs 38,700 per kg and weekly-based delivery by Rs 125 to Rs 38,445 per kg.